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Carrefour Case 7 Analysis

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Running Head: CARREFOUR IN ASIA 1

Carrefour Case 7 Analysis

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CARREFOUR IN ASIA 2

1. Identify opportunities and threats in the general environments in Asia. You may

choose to analyze the general environment country by country or to concentrate on

major countries.

Carrefour, the second biggest mass retailer globally has over the years maintained its

presence in the Asia Pacific Region. Since its first entry in Taiwan in 1987, the company has

widened its reach through various strategies enabling it to compete against key retail players

such as Wal-Mart, Makro, Tesco and Metro and among many other rivals in the Asian market.

The Asian market offers Carrefour various opportunities for growth and expansion. However,

various threats continue to face the company especially within the following eight major

markets;

China

The Chinese market provides Carrefour with various opportunities. One of these major

opportunities includes a huge market base for expansion. China currently has a population of

more than 1.4 billion people and given its sustained increases in household incomes; the Chinese

market provides Carrefour with a massive potential market for growth and expansion. Also,

supermarket and discount store developments experienced over the years in China provides

major opportunities for expansion especially within China’s ten richest cities such as Shenzhen

that has a population of 1.3million and $2887 in Per Capita Annual Disposable income.

However, political risks such as Chinese government regulations and competition poses major

threats for Carrefour. The unpredictability of the Chinese government regulations, whether

national, provincial or local threatens Carrefour’s operations. For instance, dating back to 1992,

the Chinese government authorized foreign involvement in retailing only through joint ventures

with local firms while in 1999, the government concluded that foreign firms could not hold more

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Running Head: CARREFOUR IN ASIA 1 Carrefour Case 7 Analysis Name Institution Instructor Course Date CARREFOUR IN ASIA 2 1. Identify opportunities and threats in the general environments in Asia. You may choose to analyze the general environment country by country or to concentrate on major countries. Carrefour, the second biggest mass retailer globally has over the years maintained its presence in the Asia Pacific Region. Since its first entry in Taiwan in 1987, the company has widened its reach through various strategies enabling it to compete against key retail players such as Wal-Mart, Makro, Tesco and Metro and among many other rivals in the Asian market. The Asian market offers Carrefour various opportunities for growth and expansion. However, various threats continue to face the company especially within the following eight major markets; China The Chinese market provides Carrefour with various opportunities. One of these major opportunities includes a huge market base for expansion. China currently has a population of more than 1.4 billion people and given its sustained increases in household incomes; the Chinese market provides Carrefour with a massive potential market for growth and expansion. Also, supermarket and discount store developments experienced over the years in China provides major opportunities for expansion especially within China’s ten richest cities such as Shenzhen that has a population of 1.3million and $2887 in Per Capita Annual Disposable ...
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